Auto Insurance policies can be divided into different
categories according to the coverage they provide. Broadly
speaking there are four kinds of policies known as Collision
Insurance, Comprehensive Coverage Insurance, Uninsured and
underinsured Motorist Coverage policies and No Fault Automobile
Insurance policy. Besides these, there are policies that take
care of other needs like covering an auto loan, paying for
towing expenses or paying for the cost of a rented car while
your vehicle is being repaired.
The most common insurance
policies are:
Collision: Any property damage caused to
your vehicle due to an accident caused by any other vehicle or
object is covered under this policy. The claim amount cannot
exceed the actual cash value of the vehicle and is subject to
any deductible.
Comprehensive: Any property damage to
your vehicle that is caused by non-collision factors like fire,
theft, vandalism, and even natural disasters like flood,
hurricane or earthquake is covered under this policy.
Uninsured Motorist Coverage (UM) and underinsured motorist (UIM)
coverage: takes cares of any injury that may result to you or to
persons insured in your policy from an accident that takes place
with another uninsured or underinsured driver or vehicle owner.
Generally only body injuries are covered under this policy.
No Fault Auto Insurance Policy: Irrespective of who caused the accident, the insurance company pays for the medical expenses
and for the loss of wages that the insured suffers on account of
a collision under this policy.
Some other additional
coverage that an auto insurance policy holder can buy are:
Property Damage Liability and Bodily Injury Liability: These two
policies protect the insured from any claims made against him
for causing damage to property including vehicle belonging to
another person or for causing any bodily injury or loss of life
to other individuals up to the amount mentioned in the policy.
Auto Lease Protection: is an additional protection that you may
add to your collision or comprehensive auto insurance policy to
take care of any gap that exists between your auto loan amount
and the cash value of your vehicle.
Full Tort and Limited
Tort: available only in the state of Pennsylvania allows the
insured to retain unrestricted rights to bring a lawsuit against
a negligent party or recover expenses incurred for certain
damages.
Rental Expense: Known as Extended Transportation
Expense Coverage, the policy pays for a rental car while your
vehicle is being repaired or replaced.
Medical Payments
Insurance covers medical expenses for injuries sustained in an
accident involving any vehicle for the insured, his passengers
and other parties irrespective of whose fault it is.
Towing and Labor: An additional coverage option that can pay for
all necessary towing and labor costs to tow your damaged vehicle
to a work shop or another location.
About the Author:
Marcus Dubois is a veteran in the insurance industry, and
recommends InstaQuoter to get an instant auto insurance quote.
See
http://www.instaquoter.com/auto/ for more information.
